Groupon In Takeover Talks With Google

Popular online discount coupon service Groupon is said to be considering an acquisition bid by Google.

Citing people with the knowledge of the talks between the two companies, Bloomberg reported that Groupon is currently considering whether to accept Google's offer or to move ahead with a fresh round of funding that could value the company at $3 billion.

According to the Bloomberg sources, the company's management held talks last week in order to discuss both possibilities and is currently leaning towards an acquisition. However, the company will not be making a decision until the end of this year.

If Google manages to acquire Groupon, its online advertising business could receive a significant boost and would provide Google entry into the lucrative web based discount coupon market.

However, Bloomberg said that Groupon may decide against the Google acquisition as a previous attempt by Yahoo had fallen through.

Groupon representatives refused to comment on the matter.